How the 2025 Budget Could Shape Christmas: What It Means for Your Festive Season. That's Christmas 365 Takes a Look

Worried about bills?

The Chancellor’s 2025 Budget has dominated headlines, with households and businesses alike wondering what it all means for daily life. 

But at That’s Christmas 365, we’re looking at what you really want to know: how could the Budget affect Christmas? 

Whether it’s the cost of your festive food shop, the presents under the tree, or the winter energy bill you dread opening, policy decisions made in spring and summer have a habit of catching up with us by December.

Here’s how the Budget could influence your Christmas—for better or worse.

Potential Positives for Christmas 2025

More money in your pocket (if tax thresholds shift)

Any rise in personal allowances or adjustments to National Insurance rates could give households a little financial breathing room. Even a modest increase in take-home pay adds up over the year, and by December that could mean extra room in the budget for gifts, entertaining, or travel.

Support for energy bills could soften winter costs

If the government maintains or extends support schemes for gas and electricity, this will be especially welcome when the nights draw in. With Britain’s winters getting colder and pricier, any relief could help families heat their homes comfortably while still enjoying festive treats.

Retail incentives may boost shopping deals

Should the Budget include measures to support high streets, small shops, or online retailers—such as temporary business rate relief—consumers could benefit through more competitive pricing. Christmas sales may start earlier, run longer, or simply come with better value.

Help for families on lower incomes

Increases in Universal Credit, child benefits, or pension support would lift some pressure for families who often feel the festive squeeze most acutely. These measures, announced earlier in the year, will directly affect how much flexibility households have when December arrives.

Possible Negatives That Could Affect Christmas Spending

Higher VAT or duties could push up festive favourites

If VAT rates rise or duties on alcohol, tobacco, sugary foods, or imports increase, the cost of traditional Christmas purchases could climb. This might affect everything from your prosecco and whisky to chocolates, biscuits, and party snacks.

Inflation impact from broader tax or spending changes

Budgets that restrict spending or shift taxation often ripple through the wider economy. If inflation rises later in the year, festive essentials—including food, decorations, clothing, and toys—may cost more. This could lead to tighter gift budgets and more careful planning.

Energy bill uncertainty could overshadow celebrations

If support schemes are scaled back, or if the Budget signals future increases in energy pricing, households may become more cautious. Festive displays, longer heating hours, and Christmas entertaining all become harder when utilities rise sharply.

Travel could become more expensive

Changes to fuel duty, road tax, or rail funding often influence winter travel prices. For families who trek across the country to see loved ones, this could mean pricier petrol or costlier train fares—making the journey home for Christmas a bigger financial undertaking.

How You Can Prepare Now

Not so worried with careful planning

Start budgeting early

If you suspect costs will rise, spacing out your Christmas spending through the year can soften the blow.

Look for price-freeze products

Some retailers and supermarkets commit early to freezing prices on festive favourites. These are worth bookmarking.

Consider energy-efficient decorations

If energy support looks uncertain, switching to LED lights or using timers could manage costs without dimming the magic.

Support small businesses while saving

If the Budget gives independent retailers a boost, you might find better deals—and more unique gifts—by shopping small.

Final Budget Thoughts

Budgets always arrive with a mixture of optimism and uncertainty. While the 2025 Budget could bring welcome support for households and businesses, it may also introduce price pressures by the time the festive season rolls around. Keeping an eye on key areas—energy, retail costs, tax changes, and inflation—will help you plan a Christmas that’s joyful, affordable, and stress-free.

Whatever the Budget holds, That’s Christmas 365 is here throughout the year to help you prepare, save, and celebrate in style.

The Rising Cost of the Average British Christmas Dinner: A Festive Budget Dilemma

As the festive season approaches, families across the UK are preparing for one of the year's most cherished traditions: the Christmas dinner. 

However, this year, the rising cost of the classic feast is giving many pause. With the cost of living continuing to bite, households are left balancing tradition with tight budgets.

The Components of a Christmas Feast

A traditional British Christmas dinner usually consists of roast turkey, stuffing, pigs in blankets, roast potatoes, Brussels sprouts, parsnips, cranberry sauce, and, of course, a Christmas pudding to round things off. Added to this are festive drinks, crackers, and the occasional mince pie. But these staples of seasonal joy have seen sharp price increases in recent years.

Why Are Prices Rising?

Inflation and Supply Chain Issues

Inflation has had a significant impact on food prices across the board. Recent figures show that the price of staples like potatoes, carrots, and even frozen turkeys has increased considerably due to higher production and transportation costs.

Labour Shortages

Labour shortages in the agricultural and food production sectors have caused delays and increased wages, further driving up costs. This has affected everything from poultry farming to vegetable harvesting.

Energy Costs

Rising energy bills have also played a role. Farmers and manufacturers face higher costs for refrigeration, machinery, and fuel, which are inevitably passed on to consumers.

Seasonal Demand

The festive season traditionally sees a spike in demand for Christmas dinner essentials, which can lead to price surges, especially for items like turkeys and luxury treats.

The Cost in 2024

In 2024, the average cost of a Christmas dinner for six is estimated to be nearly £40, up from £28 just a few years ago. Here’s how some key components have changed:

Turkey: Up by 12% compared to last year.

Pigs in Blankets: A 15% increase due to higher pork prices.

Vegetables: A mixed bag, with Brussels sprouts up by 10%, while some root vegetables remain stable.

Christmas Pudding: Luxury versions have seen a 20% surge.

Tips for Managing Costs

For those looking to enjoy a festive meal without breaking the bank, here are some tips:

Shop Early: Prices often rise closer to Christmas, so buying non-perishables in advance can save money.

Consider Alternatives: Opting for chicken instead of turkey or homemade pigs in blankets can reduce costs.

Embrace Leftovers: A well-planned Christmas dinner can double as meals for the following days.

Support Local Producers: Local markets can offer better deals, especially for fresh produce.

Limit Luxuries: Focus on family favourites and skip expensive extras if they’re not essential to your celebration.

A Festive Balancing Act

The rising cost of Christmas dinner reflects the broader challenges faced by households across the UK. Yet, the spirit of Christmas lies not in the expense, but in the togetherness and joy it brings. By planning carefully and embracing creativity, families can still enjoy a magical meal without the financial strain.

This festive season, let’s raise a glass (or a cup of tea) to finding comfort in the little things and making the most of what we have.

How are you planning to keep costs down this Christmas? Share your tips and ideas below!